Evolution of Planning and Economic Policy in India
The Planning Commission, established in 1950, bolstered the public sector with goals to increase production and gains, provide employment opportunities, reduce factors causing loss in earnings, and create a society characterized by equality and justice without solely relying on GDP.
The first Five-Year Plan prioritized agriculture, while the second plan focused on investments in the government sector and heavy industries, following the Nehruvian Model. The third plan continued to emphasize industrialization. However, up to the sixth plan, despite advancements in development and production, only some regions saw improvement due to geographical and investment inequalities.
The seventh Five-Year Plan, introduced after Rajiv Gandhi’s death, marked a departure from the Nehruvian Model and Democratic Socialism.
Post-1990, policies of Liberalization, Privatization, and Globalization (LPG) were adopted. The new economic policy, spearheaded by then Finance Minister Dr. Manmohan Singh, initiated significant reforms aimed at increasing production, addressing losses, and enhancing competitiveness on an international scale, deviating markedly from the earlier Nehruvian approach. This era saw many industries previously under government control being prioritized differently.Top of Form
